UCC lien notice of assignment - do I need to file UCC-3 when original lender sells my equipment loan?
My equipment financing company just sent me a notice that they're assigning my loan (and the UCC lien) to another lender. The original UCC-1 was filed 2 years ago when I bought my packaging machinery. Now I'm getting this formal notice of assignment but I'm confused about whether anything needs to be filed with the state. The new lender says they'll handle everything but I want to make sure the lien is properly transferred and my equipment title stays clear. Do I need to file a UCC-3 assignment or does the notice of assignment automatically update the public record? I'm in manufacturing and can't afford any lien complications that might affect my credit line renewals.
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Aiden Chen
The notice of assignment itself doesn't automatically update the UCC filing - that's just notification to you as the debtor. The new lender (assignee) should file a UCC-3 assignment form to make the transfer official in the public records. You don't file anything yourself, but you should definitely verify they actually do it.
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Sophia Bennett
•That makes sense, so it's the new lender's responsibility to file the UCC-3 assignment. How long do they typically have to do this? And should I be worried if I don't see it in the system after a few weeks?
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Aiden Chen
•There's no legal deadline for filing the assignment, but most professional lenders do it within 30-60 days. You can search the UCC database by your business name to check if the assignment got filed.
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Zoey Bianchi
Been through this exact situation twice with equipment loans. The first time the new lender never filed the assignment and it caused confusion when I tried to refinance later. Make sure you follow up because not all lenders are diligent about this step.
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Sophia Bennett
•What kind of problems did you run into during refinancing? I'm planning to expand next year and might need additional credit.
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Zoey Bianchi
•The UCC search showed the old lender still as secured party even though they'd sold the loan. New potential lenders got confused about who actually held the lien. Had to get documentation from both lenders to sort it out.
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Christopher Morgan
•This is why I always check the state UCC database myself after any loan changes. Takes 5 minutes and saves headaches later.
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Aurora St.Pierre
Actually dealt with a similar mess last month. Had three different equipment loans get sold to the same factor and none of the assignments were filed properly. Ended up using Certana.ai's document verification tool to upload all my loan docs and UCC filings - it instantly flagged the inconsistencies between what was filed vs what should have been updated. Made it really clear which assignments were missing.
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Sophia Bennett
•That sounds really useful - did it help you get the assignments actually filed? I'm worried about having to chase down paperwork between multiple lenders.
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Aurora St.Pierre
•Yeah, having the clear documentation of what was wrong made it much easier to get the new lender to file the missing UCC-3 forms. Just uploaded the PDFs and got an instant report showing exactly which filings didn't match.
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Grace Johnson
Wait, I thought when you get a notice of assignment the UCC automatically transfers? That's what my bank told me when they sold my construction equipment loan.
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Aiden Chen
•That's not correct. The notice of assignment establishes the legal transfer of rights, but the UCC public record doesn't update automatically. The new secured party should file a UCC-3 assignment to make it public.
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Grace Johnson
•Oh man, that means my bank might not have filed anything either. This was 6 months ago - should I be concerned?
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Jayden Reed
•Definitely check the state database. Search by your business name and see if there's a UCC-3 assignment on file. If not, contact your new lender ASAP.
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Nora Brooks
The whole UCC assignment process is unnecessarily complicated. Why can't these lenders just handle their paperwork properly without us having to babysit them?
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Eli Wang
•Because there's no penalty for not filing the assignment. It only becomes a problem when the debtor needs to deal with other lenders or wants to release the lien later.
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Nora Brooks
•Exactly! And then WE have to clean up their mess when we need financing. It's ridiculous.
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Cassandra Moon
Key thing to remember is that you as the debtor can't file the UCC-3 assignment yourself - only the current secured party (old lender) or the assignee (new lender) can file it. But you should definitely verify it gets done because it affects your credit profile.
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Sophia Bennett
•Good point about the credit profile impact. I hadn't thought about how this might show up on business credit reports.
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Cassandra Moon
•Right, and if you ever need to get a UCC-3 termination when the loan is paid off, it needs to come from whoever is officially listed as the secured party in the current filing.
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Zane Hernandez
I always save copies of the notice of assignment and check online within 30 days. If I don't see the UCC-3 assignment filed, I call the new lender directly. Most of the time they just forgot and will take care of it immediately.
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Sophia Bennett
•That's a smart approach. Do you have any trouble accessing the UCC database to check, or is it pretty straightforward?
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Zane Hernandez
•Most states have online UCC search portals now. Usually costs a few dollars per search but worth it for peace of mind. Just search by your business name and you'll see all active filings.
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Genevieve Cavalier
Pro tip: get the new lender to send you confirmation when they file the UCC-3 assignment, including the file number. Makes everything easier to track and proves they actually did it.
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Sophia Bennett
•Great suggestion! I'll definitely ask for that confirmation. Should I request anything specific in terms of documentation?
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Genevieve Cavalier
•Just ask for the UCC-3 file stamp or confirmation number from the Secretary of State office. That's proof it was actually accepted and processed.
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Ethan Scott
•Some states also email confirmation receipts when UCC forms are filed electronically. The new lender should be able to forward you that confirmation.
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Lola Perez
Had this happen with my restaurant equipment financing. The notice of assignment came but no UCC-3 was ever filed. Caused major problems when I tried to get an SBA loan 8 months later because the lien records were inconsistent.
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Sophia Bennett
•How did you eventually resolve it? I'm definitely going to stay on top of this now.
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Lola Perez
•Had to get both the old and new lender involved to sort out the documentation. The new lender finally filed the assignment but it delayed my SBA approval by 6 weeks. Could have been avoided if I'd checked sooner.
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Nathaniel Stewart
Bottom line: the notice of assignment transfers the debt legally but doesn't update public UCC records automatically. New lender should file UCC-3 assignment within reasonable time. You should verify it gets done because it affects future financing and lien releases. Don't assume it happens automatically.
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Sophia Bennett
•Perfect summary, thank you. I'm going to contact the new lender tomorrow to make sure they understand they need to file the UCC-3 assignment and ask for confirmation when it's done.
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Riya Sharma
•Smart move. Most lenders are good about it when you ask directly, they just sometimes forget in the shuffle of processing loan transfers.
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